Remarks from Bank of Canada Governor Poloz, these via Reuters
- Increased trade integration could make it more challenging for central banks to maintain inflation targets
- Bank's conjecture is that increased integration will make economy less responsive to both interest rate and exchange rate fluctuations
- Bank's models suggest central banks that ignore effects of integration will react too gradually to external shocks
- Effects of fluctuations in domestic interest rates and exchange rates on domestic economy may lessen as economies become more integrated
- Domestic inflation may come to be driven more by global demand and supply, less by domestic forces
- Policy-makers must acknowledge that international developments will influence economies, volatility of financial markets
- Policy-makers trying to counter integration effects could consider automatic fiscal stabilizers, or widening inflation-target bands
There is a bit there from Poloz, but nothing directly on the CAD nor monetary policy.
And ... maybe this is just me ... and no disrespect to Mr. Poloz ... but whenever I see or hear "BOC" I am thinking "What has the Bank of China said?"
Srsly. With respect, if the Bank of Canada could change its name to the Bank of Mooseland, or something like that, it would make it a lot easier on me, and I'm sure many would agree.
USD/CAD barely moving after the Poloz comments. Hardly surprising.